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Friday, January 6, 2012

This new year started with a thud for natural gas prices, as the red line on the chart below illustrates. Considerably worse than past (unimpressive) years.

Given the market conditions and the current high level of storage, don't look for the January spike in prices we've seen in past years. I hate to say it, but gas fans need to pray for a new (albeit temporary) Ice Age. Or at least a few big, well placed cold snaps.

4 comments:

Anonymous
said...

I feel like cold winters in 2010 and 2011 allowed drillers to be undisciplined.

The problem is over-supply; we might need a very warm winter to force companies to make uncomfortable choices, and put down rigs. I really see that as the path to higher prices - fiscal austerity brought on by low cash flows.

Well said. It will be interesting to see whether the completion of HBP drilling here in the Haynesvillewill have an effect on overall production during 2012. One report this week indicated that the current 802 rig count needs to drop to 750 before the reduction will boost prices.

In terms of the Haynesville, the big question is what does Haynesville production look like in 6 months or 12 months after half of the rigs in the play disappeared over the course of 2011? And will that make a difference in overall supply with the other shale plays cranking out gas?

It's Been a Gas...

As of 12/31/15, I have stopped updating the Haynesville Play site on a regular basis. I will occasionally post items I find interesting, but I will no longer maintain the data or keep the news current. The site will remain up as an historical archive and a home for occasional musings.

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About Me

My goal is to compile a real-time historical record of the development of the Haynesville Shale.
There is so much going on at any one time that impacts the Haynesville Shale. I weed through the information and summarize the important points.
I look at the micro-trends, such as drilling results and drilling rig activities, focusing on the who, what and where. I also concentrate on the macro-trends that will impact the future of the Haynesville Shale, including the supply/demand issues, the market for natural gas and trends that impact the gas industry as a whole.